Cisco Launches IPv6 Transition Strategy – the Time is Now to Save the Internet

| Oct 13, 2009 | Carrier Infrastructure | Competitive Intelligence Report

| Analyst: Glen Hunt

Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: High

Event Summary

October 13, 2009 – Cisco announced enhancements to its Internet Protocol Next-Generation Network (IP NGN) architecture designed to secure the foundation of the Internet, which must accommodate the exponential increase of connected devices for secure, efficient video delivery and collaboration. The Carrier-Grade IP Version 6 (IPv6) solution enables service providers to deal with the bottleneck created by the imminent depletion of IPv4 addresses and the explosion of IP-based end point devices.

Analytical Summary

• Current Perspective: Positive on Cisco’s announced Carrier Grade IPv6 Solution (CGv6), because it addresses the looming issues facing service providers as they continue to support ever increasing numbers of IP devices. IPv6 was defined years ago and most vendors support dual stack operations, but Cisco’s solution offers scalable migration, co-existence and a support framework that brings a new focus and a sense of urgency to the issues surrounding continued Internet expansion. The explosion in the number of IP devices for applications such as peer to peer, presence, mobility, security sensors and countless other applications will require the additional address space beyond what remains in the existing IPv4 address pool. That issue coupled with supporting existing private-IP networks and existing infrastructures which cannot easily be upgraded to IPv6, requires a flexible but effective path forward.

• Vendor Importance: Moderate to Cisco since most of its router/switch portfolio is currently capable of supporting IPv6 as well as IPv4 device traffic already. The additional IPv6 support provided in the new CRS-1 and ASR 1000 Series platforms provides the scale and distribution, respectively, needed to formulate a plan to prevent Internet growth from being stalled and at the same time provide support for existing legacy infrastructures which will be around for years to come.

• Market Impact: High on the carrier infrastructure market, because although the IPv6 issue has been discussed and analyzed for many years, the time has come where it can no longer be ignored. Large service providers, such as Free and CERNET (referenced in Cisco’s announcement) acknowledge the need to begin the long and delicate transition to a full IPv6 model, while giving consideration to interworking and continued business growth. Cisco is leveraging its CRS-1 router platform to provide the scale and performance necessary to enable translations in the core and the ASR Series to provide the same capabilities only on a smaller-scale which can be distributed to the network edge. Competitors are sure to follow suit with their solutions and migration support, but Cisco gains immediate mind share and credit for taking the challenge a step forward with a well thought through solution.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Carrier Infrastructure | More information

Recommended Competitor Actions

• Vendors such as Alcatel-Lucent, Ericsson, Huawei and Nokia Siemens Networks should weigh in on how their professional services organizations are currently working with large service providers to establish a smooth migration plan for their customer’s networks. Since each network has a totally different set of requirements and starting point, a customized solution driven by a professional services engagement may be the optimal approach for service providers to take.

• All competitors should update their portfolios with information about how and when they will be able to offer IPv6 transformation support in their products. Most if not all already provide IPv6 support or note that they are IPv6 ready. When the address pool for IPv4 addresses is exhausted, around the end of 2011, they should have articulated their strategy and solution capabilities to their service provider customers and have active engagements.

Recommended End User / Customer Actions

• Service providers, such as Orange, who have launched IPv6 services should tap Cisco and/or other suppliers to help develop its systems and services to support IPv6 (for VPN and dedicated Internet services) natively, with the same sets of options it has available with IPv4. This would include managed services, such as firewalls and managed security, managed network/managed router; and Web/applications hosting services including storage, content distribution and messaging. In order for IPv6 to be successful all of the basics must be in place and manageable.

• Service providers should explore custom opportunities in areas that it has identified as potential early adopters of IPv6 – M2M applications. With the ability to host IPv6 applications natively, new opportunities could provide early market momentum that could yield significant new revenue growth over the next three to five years.

• U.S.-based operators serving enterprise-class customers – including Verizon Business, AT&T, Sprint, Global Crossing, Level 3 and Qwest – can point at their history offering IPv6 services either through dedicated networks or through dual-stack implementations. These service providers could expand their penetration by working their vendor partners to develop IPv6 network interconnection and support large-scale address translation across their respective customer-facing systems, and managed and hosted applications.

• Enterprises looking for IPv6 support need to review available features carefully with their candidate service providers and their respective equipment vendors. They need to see the scope of IPv6 reports, monitoring and reporting tools available, and what off-the-shelf managed network, application, hosting and security services they can obtain natively in IPv6. Enterprises do need to have a preparedness strategy in mind, for a time when IPv4 address depletion will begin to affect the availability (and price) of available IP addresses.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Carrier Infrastructure | More information

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